The Integral Diagnostics Ltd (ASX: IDX) share price stormed 12% higher yesterday, closing the day at $3.05 a piece.
In early afternoon trading today, the share price has dipped by a small 1.15%, but thanks to yesterday's surge, shares are still 15.96% higher than this time last year.
For context, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.6% higher this afternoon. Over the year, the index is 11.05% higher.
The healthcare business provides diagnostic imaging to general practitioners, medical specialists, and allied health professionals and their patients. It operates over 90 radiology clinics across Australia and New Zealand.
What boosted the ASX small-cap healthcare stock?
Integral Diagnostics posted its FY25 financial results yesterday morning. And the numbers were impressive.
It revealed a 33.7% increase in revenue and other income to $628 million. It also reported a 38.3% lift in operating EBITDA and a 77.4% jump in operating NPAT.
The company said solid revenue growth was driven by growth in patient volumes, Medicare Indexation, and a "continued favourable mix impact".
The board announced a fully franked final dividend of 4.0 cents per share. This brings the full-year dividend to 6.5 cents per share, fully franked. The dividend reinvestment plan (DRP) will again be available. The record date for dividend payments is 1 September, and the payment and issue date is 3 October.
Going forward, the group expects growth to continue, driven by organic earnings growth, accelerated use of teleradiology, and completion of its merger with Capitol. The business started the FY26 financial year strong and achieved 7.0% revenue growth in July.
Up, up and away
Following the announcement and share price surge, Macquarie Group Ltd (ASX: MQG) wrote a note to investors about Integral Diagnostics shares.
The broker confirmed its outperform rating on the stock and raised its target price to $3.40, up from $3.20 previously.
At the time of writing, this represents a potential 12.8% upside for investors over the next 12 months.
"Outperform. We see several significant tailwinds for IDX over FY26E, with expected ongoing mix shift benefits to higher fee modalities supported byMRI deregulation, CT lung cancer screening programs. Higher annualised cost savings further supports our EBITDA margin expectations," Macquarie said in its note.
It said that Integral Diagnostics' financial result was in line with expectations. It also noted that the company has had a strong start to FY26.
"We expect further margin expansion driven by cost synergies from the CAJ merger, with IDX increasing synergy expectations to A$14m (from previous A$10m). We expect scale benefits and increased teleradiology to further support margin expansion. This drives our forecasts of 140bps margin expansion in FY26E, with a further 50bps expected in FY27E," the broker said.
Macquarie also revised its earnings per share by -9%, -9%, and -3% for FY26, FY27, and FY28, respectively. The changes are off the back of anticipation of minor decreases in revenue expectations in FY26 and higher interest on a fixed cost base.
